Renewable energy: Tariffs are going up

Apr 13:
The renewable industry of interest to the oil & gas sector as it is eventually an indirect substitute to some of the products that it manufactures.8In India after hitting a low, renewable energy tariffs are beginning to rise8The latest tariffs from the auctions indicate a recovery after hitting historic lows in the previous auctions during 2017-18, rates have gone up by 16% recently8Similarly, solar energy capacity was bid at Rs. 2.96 per unit for 500MW capacity in Gujarat, up from a low of Rs 2.44 hit in 2017-18.8The reason for lack of participation for solar power auctions can be attributed to-- Ambiguity on the imposition of anti-dumping and safeguard duties on solar power components-- Auctioning agencies not providing enough safeguards for revision of tariffs in case of cost escalation.-- Fixing upper ceiling of tariffs too has led to developers not bidding for the projects.8In wind energy too, cost factors are at play8Get a full analysis of what is going in this segment hereClick on Reports for more